BNT have confirmed officially on the BNT Eurovision Facebook page that they will not be at Eurovision 2014. There had been up until last week a hope that Bulgaria may still take part in the contest if they could get the funding together, whether that be through an artist or sponsorship.
BNT said that:
Despite the extended time by the EBU, there is no change in factual behind the decision to opt-out of Bulgaria in the “Eurovision” 2014, taken by the Board of BNT 11/22/2013. Thus taken and then the decision becomes final. As mentioned several times subsequently, the decision to opt just about 2014 a year, but not future periods thereafter.
In the statement they have said that they are not ruling out returning to the contest in the future. BNT withdrew due to a funding cut of 5 million Lev which meant that Eurovision was no longer affordable.
Source: BNT Eurovision Bulgaria